Bankrate's financial glossary
Did you run across an unfamiliar term when applying for a mortgage, credit card
or auto loan? Find the meaning here, along with definitions of other financial words
and phrases, in Bankrate.com's financial glossary.
A policy that includes hazard coverage, covering loss or damage to property, as well as coverage for personal liability and theft.
A policy that guarantees workmanship on construction of a home and functionallity of some appliances, and which pays for repairs for a specified period.
The total income of all members of a household. An important yardstick used by lenders evaluating applications for joint credit.
An acronym for home equity line of credit.
Home equity conversion mortgage
A special type of mortgage, sometimes called a reverse mortgage, that enables older homeowners to convert the equity in their homes into cash, using a variety of payment options to address their specific financial needs. Unlike traditional home equity loans or mortgages, a borrower does not qualify on the basis of income but on the value of the home. In addition, the loan does not have to be repaid until the borrower no longer occupies the property.
Fannie Mae's adjustable rate conventional reverse mortgage, which allows older homeowners to borrow against the value of their homes and receive the proceeds according to the payment option they select. The amount available is based on the number of borrowers and their ages and the adjusted property value. Anyone 62 years of age or older who either owns his or her own home free and clear or has very low mortgage debt is eligible.
A document with an itemized listing of closing costs payable at the closing or settlement meeting when buying property. The closing costs can include a commission, loan fees and points, and sums set aside for escrow payments, taxes and insurance. It is signed by both the buyer and the seller, who may be paying some of the closing costs. The statement form is published by the Department of Housing and Urban Development (HUD).
Someone with expertise in computer systems and how to enter them in an unauthorized fashion. Hackers may be simply curious or malicious in intent.
The lenght of time a capital asset is owned. Assets held 12 months or less are short-term; those owned more than 12 months are long-term properties. The holding period determines the rate at which the asset is taxed when sold.
Hope Scholarship credit
A tax credit to help offset tuition and fees paid during a student's first two years of post-secondary education.